CIE Accounting Paper-1: Specimen Questions 1 - 2 of 214

Question number: 1

MCQ▾

Question

Which account is prepared in lieu of Cash Book?

Choices

Choice (4) Response
a.

Income and Expenditure A/c

b.

Receipts and Payments A/c

c.

Trading A/C

d.

Profit and Loss A/C

Answer

b.

Explanation

Receipt and Payment account are real in nature. It contains summary of actual receipts and payments of particular period. Thus it includes both the capital as well as revenue items. Receipt and Payments A/C are prepared in lieu of Cash book.

Question number: 2

MCQ▾

Question

In December 2010 Ibrahim wrote off Ali’s debt of $100. On 30 April 2012 Ali sent a cheque for $100. Which journal entry would Ibrahim make on 30 April 2012?

Choices

Choice (4) Response
a.

Journal entry for debt in the book of Ibrahim like A

Value is given in table.

Debit

$

Credit

$

Bank

Bad debts recovered

100

100

b.

Journal entry for debt in the book of Ibrahim like A

Value is given in table.

Debit

$

Credit

$

Bad debts recovered

Ali

100

100

c.

Journal entry for debt in the book of Ibrahim like A

Value is given in table.

Debit

$

Credit

$

Bad debts recovered

bank

100

100

d.

Journal entry for debt in the book of Ibrahim like A

Value is given in table.

Debit

$

Credit

$

Ali

bank

100

100

Answer

a.

Explanation

Bad debts are unrecovered money from the customer. Hence bad debts are deducted from the debtors at the end of the every year in order to know about the original amount due to the business.

Share